UT BANK LTD. vs NEW ERA MINING CONTRACTORS LTD. & ORS
2016
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE JENNIFER ABENA DADZIE
Areas of Law
- Civil Procedure
- Contract Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
Plaintiff sought summary judgment against 2nd and 3rd Defendants for a debt recovery. Defendants claimed fraud by 1st Defendant vitiated their mortgage agreement. Court held that the claimed fraud did not provide a defense and granted summary judgment to Plaintiff.
This is an application by Plaintiff/Applicant herein praying that summary judgment be entered against the 2nd and 3rd Defendants/Respondents for the liquidated reliefs endorsed on the Writ of Summons, to wit: “Recovery of the sum of Eight Hundred and Forty-Three Thousand, Five Hundred and Twenty-Six Ghana Cedis and Ninety-Six Pesewas(GH₵843, 526. 96) plus interest at the agreed rate of 30% per annum from 10th April 2013, to the date of final payment plus costs from 1st, 2nd and 3rd Defendants jointly and severally”, on the ground that the 2nd and 3rd Defendants/Applicants have no defence to the claim endorsed on the Writ of Summons, or to a particular part of the claim.
I have read the application for Summary Judgment, the supporting affidavit and examined the various exhibits put in evidence by the Plaintiff/Applicant; the Statement of Defence and the Affidavit in Opposition to this application filed by the 2nd and 3rd Defendants/Respondents to this suit.
Detailed in the affidavit accompanying the motion paper are the facts, which, according to the Plaintiff/Applicant gave rise to the instant application.
According to the Plaintiff/Applicant, in September 2011, upon a request by the 1st Defendant, the Plaintiff/Applicant agreed to advance to the 1st Defendant two (2) facilities, namely, an equipment financing facility and a short term loan facility amounting to One Million Six Hundred and Twenty-Five Thousand Ghana Cedis (GH₵ 1, 625, 000. 00) at the rate of interest calculated at 30% per annum made up of a base rate of 25. 9% per annum and a risk margin of 4. 1% per annum payable over a period of eighteen (18) months.
These terms were captured in a banking facility letter dated 12th September, 2011 and a Memorandum of Acceptance dated 13th September, 2013 both of which are attached to the Affidavit and marked as “UT 1” and“UT 2”. Plaintiff/Applicant states that as security for the repayment of the facility, the 2nd and 3rd Defendants/Respondents mortgaged their jointly owned property described as Plot No. 930 Block 3, Section 075 situate at Adjiringano, Accra in favour of the Plaintiff/Applicant.
According to the Plaintiff/Applicant, this is evidenced by a Deed of Mortgage dated 20th October, 2011, attached to the Affidavit as Exhibit “UT 3”, between the Plaintiff/Applicant as Mortgagee, the 1st Defendant as Borrower and the 2nd and 3rd Defendants/Respondents as Mortgagors.
It is the Plaintiff/Applicant’s further case that an amount of Seven Hundred